Banking and Financial Services

RAND: Should TRIA Continue Or Be Allowed to Expire?

Photo by Anthony Behar/Reuters

Since the Terrorism Risk Insurance Act (TRIA) was last reauthorized in 2007, terrorism insurance has remained widely available and the price has fallen. However, challenges remain from both a social and an insurance point of view. Uncertainty remains regarding how much terrorism coverage would be available without TRIA. With TRIA set to expire on December 31, 2014, it is unclear whether the improvements in the market since TRIA was first passed in 2002 can be sustained without it.

RAND organized a conference in June to present findings of RAND research on:

The National Security Perspectives on Terrorism Risk Insurance in the United States,

The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire, and

The Impact of Workers' Compensation Insurance Markets of Allowing the Terrorism Risk Insurance Act to Expire.

The conference brought together people from the private, academic, congressional, and regulatory sectors. Discussions included the implications of TRIA expiration, modification, and extension. More detailed information can be located at the following: